Agility in time of crisis: Adding a New Vertical
Let’s look at one of our clients. Ambrogio15, exploring a new vertical. They are a dine in restaurant. We had established online ordering directly from their website with To Go Order in 2018, and it’s been generating revenue through an additional channel since then. When the stay at home order hit, their system was already in place, and they were able to accept orders online immediately, without a change in their system. Being prepared is typical By the Book Situation. With the current situation, their restaurant online delivery system results are up over 800% compared to last year’s results.
Agility, adding a new vertical:
Three weeks before writing this article, on a Friday evening in the early stay at home order time. I received a call from one of the co-founders. He saw the issues with supplies in grocery stores and the lines to get there. They figured out, that if they offered online grocery shopping, they would support their fully stocked suppliers. And mainly help out their clients that would not have to wait in line. They will also generate a new vertical when it comes to profit. Great idea, wonderful opportunity, and supporting multiple levels of people throughout the process.
Agility also comes your partners
They ask me when I could have something fully functional to their local clients. I then grabbed my laptop and started to develop a complete site with the 100+ products they would be selling. By that Monday morning, clients were starting to shop for groceries on their new website. Social Media posts and Email Marketing were the channels used to start generating revenue immediately, while SEO is building. They did not use any SEM, and still started to see growth week after week, their clients seeing the convenience and the quality of products provided.
The Day After Marketing
We will finish with the case study from above. A few days ago, we received another call from the same co-founder, and he is really excited to keep the site going after the stay at home order is over. This will start the time to get everything by the book. This new vertical was created in a time of crisis, but is perennial after life gets back to normal.
Keeping it Lean
What we are learning from all this is to be as lean as possible. This online solution did not increase overhead, did not increase labor cost either. They are generating more revenue without increasing fixed costs and only increasing variable costs on per order basis. This means that they are not taking any additional risk by having this new vertical.
Can you add a new vertical to your business?
New verticals can be added while exploring the sales channels you are currently using. Is there other channels you could go through, provide different packages in your offers, new industries that you can target, adapt your products and services to new horizons. Therefore you will automatically generate potential new revenu generating streams. Not all will succeed, but it’s until you try it that you will know. If not it would be to easy, and available to opportunists.